Integrated circuit packaging system with interposer and method of manufacture thereof

A method of manufacturing for an integrated circuit packaging system comprising:

• providing an interposer having rows of device contacts, a row of interconnect contacts, and rows of test pads exposed on a first side of the interposer including:
• the row of the interconnect contacts along a interconnect perimeter region of the interposer,
• the rows of the device contacts at a device perimeter region of the interposer with the device perimeter region within the interior of the interconnect perimeter region, and
• the rows of the test pads at a test perimeter region of the interposer with the test perimeter region encompassing the device perimeter region;
• and
• mounting an integrated circuit over the device contacts.

An integrated circuit packaging system comprising:

• an interposer having device contacts, interconnect contacts, and test pads including:
• the interconnect contacts along an interconnect perimeter region of the interposer,
• the device contacts at a device perimeter region of the interposer with the device perimeter region within the interior of the interconnect perimeter region, and
• the test pads at a test perimeter region of the interposer with the test perimeter region encompassing the device perimeter region;
• and
• an integrated circuit over the device contacts.